Tag: banking regulations
The Polish banking sector is feeling the pressure of rising personnel costs and costs related to IT investments. Burdens are growing while the rate of return on equity declines, thus the consolidation of the sector may accelerate.
Thanks to Supervisory Review and Evaluation Process (SREP) for the first time we will have a real assessment of banks’ business models across the EU, which is a key for assessment of sustainability. CE Financial Observer talks to Piers Haben, director in the European Banking Authority.
Although the economic crisis has largely ended, European banks have not yet regained their balance, and their biggest problem is a lack of profitability. Although their capital strength has ceased to be an issue, lending will remain stagnant for a some years and companies need an integrated and effective single capital market, says Jan Schildbach, Head of the Banking, Financial Markets and Regulation team at Deutsche Bank Research.
The role of banks in the financing of the Union's real economy and financial intermediation remains high, but the capital market will become relatively more important. Further reforms should accompany this transformation and improve the tools of the capital market, especially for SME sector - says Mario Nava from the European Commission.
The Banking Union can be effective and give the potential to break the vicious cycle of fiscal and financial instability only if at the same time all necessary components are in place – a Single Rule Book, a Single Supervisory Mechanism, a Single Resolution Mechanism and financing arrangements. Quick entry to the Union would be beneficial for Poland – told Bernhard Speyer, former Managing Director at Deutsche Bank Research.